Eris Lifesciences Ltd. share price target

outlook wih high contibution of chronic/sub-chronic products, pure domestic play with insignificant regulatory risks, steady RoE of 35%+ and reselience of margins drives our upgrade in valuation multiples. With strong pipeline of...

Q1 EBITDA/PAT growth strong at 22%/20% YoY to Rs 1.3bn/Rs 1.1bn, meeting street estimates

IPM is struggling for growth above 10% even after MoM abating COVID concerns and with MRs, physician activities almost reaching pre-COVID level. We believe key reasons for growth below par are (i) subdued new prescription (Rx) leading to volume de-growth (ii) digital marketing yield going south and (iii) sustained lower demand of acute products. Cardiac and anti-diabetic growth takes a breather in Jan-21 at 8.8% and 5.3% after reporting double digit growth in most months during lockdown. While amongst top therapies Gastro and VMN reported double digit growth of 14%...

Eris Lifesciences (ERIS) reported a healthy Q3 with a 3% revenue beat led by superior execution on the core cardio-metabolic and VMN portfolios (~78% of sales).

Management guided for 1) New launches and better MR productivity to lead growth in FY22E 2) launch derma products with addition of new MRs within next 2 quarters and 3) will continue to outperform in covered markets and IPM. We continue to prefer ERIS as one of our top picks in mid-cap space due to 1) pure domestic play with insignificant regulatory and currency risk, 2)...

IPM growth recovered in Dec-20 to 8.5% after weak Nov-20, due to festive season and fears related to lockdown. The key reasons for growth in Dec-20 (as from Nov-20 onwards) are (i) MRs back on field with full force and (ii) marketing activities reaching pre-COVID levels. Digital marketing continues to be an integral part of marketing activities, which actually started as a cost...

Eris Lifesciences' (ERIS) earnings are at inflection point and we expect a 16% EBITDA CAGR over FY21-FY24 (vs. 8%, FY18-FY21).

mid-cap space due to 1) pure domestic play with insignificant regulatory and currency risk, 2) contribution of chronic/sub-chronic products with steady demand structure, 3) strong balance sheet and 4) less dependenace on Chinese API and KSM. We maintain BUY recommendation and retain TP of Rs576 based on PE 21x of FY22E. Gross margin and employee cost brings EBITDAM lower: Revenue grew 6% YoY to Rs 2.8bn (PLe: Rs2.8bn), while EBITDA declined 3% YoY to Rs989m (PLe: Rs1.0bn). Gross margin was 300bps lower YoY at 80% due to launch of OTC...

Plans to increase MR headcounts by 435 reps in FY20E to cumulative MR strength of 2,500 in FY20E. It added 145 MRs in H1FY20 and plans to add 190 MRs in H2FY20 for existing portfolio as well as additional 100 MRs for...

We initiate coverage on Eris as a BUY with a price target of Rs 1,060,